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Hodnocení vlivu zastoupení rodiny ve vlastnické a řídící struktuře firem na jejich finanční výkonnost pomocí metody zkoumání shody párů
[Evaluating the Impact of Family Presence in Ownership and Management on Financial Performance of Firms Using Matched-Pair Investigation]

Author

Listed:
  • Ondřej Machek
  • Jiří Hnilica

Abstract

The role of family businesses in management theory has been getting a topic of interest of academics and practitioners. This paper deals with the analysis of performance and financial structure gaps between Czech family and nonfamily firms. Using surname matching definition, we created a sample of 890 Czech large and medium-sized family businesses. Then we used the matched-pair investigation to determine the major gaps in profitability, labor productivity, liquidity and leverage between family and nonfamily firms. The results suggest that Czech family businesses are more profitable in terms of return on assets, profit margin and absolute values of earnings. Czech family businesses also have higher labor productivity and capital intensity, however, the asset turnover appears to be lower. Another important finding is that the overall level of debt is lower in the case of family companies which is accompanied by a higher level of liquidity and working capital.

Suggested Citation

  • Ondřej Machek & Jiří Hnilica, 2015. "Hodnocení vlivu zastoupení rodiny ve vlastnické a řídící struktuře firem na jejich finanční výkonnost pomocí metody zkoumání shody párů [Evaluating the Impact of Family Presence in Ownership and Ma," Politická ekonomie, Prague University of Economics and Business, vol. 2015(3), pages 347-362.
    • Handle: RePEc:prg:jnlpol:v:2015:y:2015:i:3:id:1007:p:347-362
    DOI: 10.18267/j.polek.1007
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    References listed on IDEAS

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    1. Inka Neumaierová & Ivan Neumaier, 2014. "INFA Performance Indicator Diagnostic System," Central European Business Review, Prague University of Economics and Business, vol. 2014(1), pages 35-41.
    2. Morten Bennedsen & Kasper Meisner Nielsen & Francisco Perez-Gonzalez & Daniel Wolfenzon, 2007. "Inside the Family Firm: The Role of Families in Succession Decisions and Performance," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 122(2), pages 647-691.
    3. Demsetz, Harold & Villalonga, Belen, 2001. "Ownership structure and corporate performance," Journal of Corporate Finance, Elsevier, vol. 7(3), pages 209-233, September.
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    5. Villalonga, Belen & Amit, Raphael, 2006. "How do family ownership, control and management affect firm value?," Journal of Financial Economics, Elsevier, vol. 80(2), pages 385-417, May.
    6. Ondřej Machek & Jiří Hnilica & Martin Brabec, 2014. "Current State of Knowledge on the Performance Gaps Between Family and Non-Family Firms," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 20(3), pages 349-350, August.
    7. Štěpán Jurajda & Juraj Stančík, 2013. "Organization and Firm Performance in the Czech Republic," Prague Economic Papers, Prague University of Economics and Business, vol. 2013(1), pages 85-110.
    8. Joost Ernst & Sascha Kraus & Ilse Matser, 2012. "The relation between performance and family involvement - an exploration into the non-linear effects during the life-stage of Dutch firms," International Journal of Entrepreneurship and Innovation Management, Inderscience Enterprises Ltd, vol. 15(3), pages 198-215.
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    Cited by:

    1. Nadezda Petru & Karel Havlicek, 2016. "Specifics of the Development of Family Businesses in the Czech Republic," European Research Studies Journal, European Research Studies Journal, vol. 0(4), pages 88-108.
    2. Ondřej Machek & Tomáš Pokorný, 2016. "Rate of Failure of Czech Family Firms [Míra úpadků českých rodinných firem]," Acta Oeconomica Pragensia, Prague University of Economics and Business, vol. 2016(3), pages 24-34.

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    More about this item

    Keywords

    performance gaps; matched-pair investigation; family business;
    All these keywords.

    JEL classification:

    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
    • M10 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - General
    • M16 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - International Business Administration

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